Bitcoin mining is the method of producing or somewhat finding bitcoin currency. Unlike fiat currency that is issued when more is needed, bitcoin cannot completely be wished into an actuality but it has to be mined through analytical methods.
Bitcoin keeps a public ledger that includes prior transactions, and mining is the method of attaching new transactions to this ledger. Bitcoin price is displaying great performance. At the time of writing this, the Bitcoin price is sitting at $31251.61. The important question here is when will it end? Let’s take a look at it.
What is Bitcoin Mining?
The Bitcoin blockchain is usually defined as a database that is cryptographically preserved and, consequently, steady. The technology that provides this stability and security is cryptographic hashing.
The purpose it is called mining isn’t that it needs a true act of digging. Bitcoin is a completely digital token that doesn’t need critical mining,but it does have its own style of prospecting and replacement, which is where the “mining” terminology originates from.
Bitcoin is supported by millions of computers over the world called as “miners.” This arrangement of computers contains the identical purpose as the Federal Reserve but with certain important exceptions. Like the Federal Reserve, bitcoin miners register transactions and confirm their correctness. Unlike those fundamental administrations, however, bitcoin miners are reached out over the world and register transaction data in an unrestricted list that can be obtained by anyone.
Bitcoin mining is over
Bitcoins are created in a so-called mining method. Network members calculate solutions for a mathematical task every second to guard the network. If you are the first to calculate the solution accurately, you will get Bitcoins as a reward. The protocol specifies that this reward is halved every 4 years. It started with 50 Bitcoin per block. From a scientific point of view, the result is a geometric series that approaches zero.
At some point the block reward becomes so small that it can be neglected. If everything goes according to the protocol and it is not changed, the last bitcoins will be created around the year 2140. Then there will be 21 million bitcoins in circulation. The end of Bitcoin mining will have an impact on the entire system.
Nowadays, the block reward prompts miners to mine bitcoins and to assure the security of the network. The procurement of the hardware and the required electricity cost money. When the block reward is zero, there are only the transaction costs left to the miner. These currently make up a small part of the total remuneration and amount to around 0.7 BTC.
The block reward is currently at 6.25 BTC, so the miner receives a total of 6.95 BTC for each block produced. That’s enough what it would be if the block reward was zero. There is no need to explain what will happen when the block reward becomes smaller and smaller. Will the transaction costs that users are willing to pay enough to guarantee a safe hashrate ? Will Bitcoin exist in 2140 in the current form? Will the protocol be changed to allow further inflation? The future will tell us.